Business

Huntington builds the "bricks and mortar" of the information age

Article Abstract:

Huntington Bancshares is convinced that the financial services industry can be transformed into one based inside banks with the effective use of the 'bricks and mortar' of the information age. These bricks and mortar are information, technology, distribution, strategic thinking and customer focus. The bank has been pursuing this goal since 1990, building the information foundation in 1991, introducing the Personal Banker Automation program and Huntington Direct in 1992, moving beyond home banking in 1993-94, and integrating all these programs in 1995.

Debating the checking account hypothesis

Article Abstract:

The checking account hypothesis is analyzed. Various perspectives show that while the theory is appealing and has potentials for development, it needs to be further developed to be considered a workable hypothesis. The link between checking accounts and the solution to asymmetric information in lending is existent but the exact nature of the relationship is undetermined. Furthermore, there is no real evidence to conclude that larger banks are less efficient than small banks in loan servicing.

Beyond textbook asset-liability management

Article Abstract:

Banks have to go beyond textbook asset-liability management approaches in order to gain from interest rate-gap games. To maximize spread revenues, they must not only know the direction of future rates, but must also be able to predict where these rates will end up relative to the consensus of market players. They must come up with a forecast of rates that is both different from and superior to that of the market.